Lease deed clause
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 March 2013
Dear All,
kindly help to interpret the following clause:
Except as specifically mentioned elsewhere in this Agreement, the Lease rentals and all other charges payable by the Lessee to the Lessor under / in relation to this Agreement shall be paid free of any restriction or condition and free and clear of and without any withholding, whether on account of tax or otherwise. If the Lessee is obliged to make any counter-claim, set off, deduction or withholding from any such amount, then the amount payable by the Lessee shall be increased to the extent necessary to ensure that, after making the deduction or withholding, the Lessor receives and retains (free from any liability except for tax on overall income) a net sum equal to the Lease Rentals, if no such counter-claim, set off, deduction or withholding had been required or made.
3.3 In the event the Lessee fails to pay the Lease Rentals for a continuous period of 30 days after the due date, this Agreement shall, notwithstanding the provisions of Clause 15 (giving of notice to remedy breach), come to an end at the option of the Lessor and the Lessee shall be required to remove itself, its belongings, employees, etc. from the Leased Premises.
3.4 Except as specifically mentioned elsewhere in this Agreement, the Lessee shall not seek any reimbursement nor seek to recover any monies spent and/or paid by it in relation to the Demised Premises, from the Lessor or from the Demised Premises and to that extent the Lessee hereby waives any and all rights that they have or might have against the Lessor including the rights under section 69 of the Contract Act, 1872 or under any statute or law or under any agreement or document executed between them or any third party.
kindly help to interpret the following clause:
Except as specifically mentioned elsewhere in this Agreement, the Lease rentals and all other charges payable by the Lessee to the Lessor under / in relation to this Agreement shall be paid free of any restriction or condition and free and clear of and without any withholding, whether on account of tax or otherwise. If the Lessee is obliged to make any counter-claim, set off, deduction or withholding from any such amount, then the amount payable by the Lessee shall be increased to the extent necessary to ensure that, after making the deduction or withholding, the Lessor receives and retains (free from any liability except for tax on overall income) a net sum equal to the Lease Rentals, if no such counter-claim, set off, deduction or withholding had been required or made.
3.3 In the event the Lessee fails to pay the Lease Rentals for a continuous period of 30 days after the due date, this Agreement shall, notwithstanding the provisions of Clause 15 (giving of notice to remedy breach), come to an end at the option of the Lessor and the Lessee shall be required to remove itself, its belongings, employees, etc. from the Leased Premises.
3.4 Except as specifically mentioned elsewhere in this Agreement, the Lessee shall not seek any reimbursement nor seek to recover any monies spent and/or paid by it in relation to the Demised Premises, from the Lessor or from the Demised Premises and to that extent the Lessee hereby waives any and all rights that they have or might have against the Lessor including the rights under section 69 of the Contract Act, 1872 or under any statute or law or under any agreement or document executed between them or any third party.
12 March 2013
The first para can be understood as under -
If any deduction is to be made on lease rental say on account of Tax, then the amount to be paid after deduction of tax shall be equal to lease rental.
Let's say Lease rent is Rs.100/- and Tax @10% is Rs. 10. Now the net payment would be 90 only. However as per the condition, the net payment should be 100. So total amount for rent would be 100/90*100 = 111.11. Tax at 10% would be 11.11 and net payment would be 100.
If any deduction is to be made on lease rental say on account of Tax, then the amount to be paid after deduction of tax shall be equal to lease rental.
Let's say Lease rent is Rs.100/- and Tax @10% is Rs. 10. Now the net payment would be 90 only. However as per the condition, the net payment should be 100. So total amount for rent would be 100/90*100 = 111.11. Tax at 10% would be 11.11 and net payment would be 100.
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12 March 2013
3.3 - If rentals are not paid for a continuous period of 30day, Lessor has the option to ask lessee to vacate the premises.
3.4 - This virtually takes away all the rights of lessee.
The clause seems to be a bit stringent and it would be advisable to consult a legal advisor.
3.4 - This virtually takes away all the rights of lessee.
The clause seems to be a bit stringent and it would be advisable to consult a legal advisor.
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